Prime Office Space Is Still In Demand
There is still a high demand for premium office space in South Africa, despite the weak economic conditions and uncertain political waters. The past few months has seen various blue chip South African businesses and multinationals move into new and premium grade offices, while others have moved into pre-booked spaces in developments that are still under construction.
Premium grade offices, according to the South African Property Owners Association’s (SAPOA) official definition, is a “top quality, modern space, which is generally a pace setting in establishing rentals”. While the demand for offices isn’t as strong as it was a year ago, at the top end there is still a great demand from top multinationals and South African businesses for premium office space.
Things that impact tenants’ decisions as to where to rent offices include the address, in terms of centrality and ease of access to major economic attractions such as the city’s airport and public transport networks for staff. Another important aspect is whether the premium grade offices are able to provide their companies with the look and feel they are after.
Government Remains A Key Partner To South Africa’s Thriving Property Sector
At the same time, government’s responsibility and impact in South Africa’s property market can’t be underestimated. SAPOA sees this as a key issue, and acknowledges the mutually beneficial partnerships that a joint working relationship with government can offer during challenging economic times.
With government and the property sector working together efficiently and effectively, the property sector at large will be able to start progressing and evolving to compete on a global scale. By making cities and how they are government the heart of the national economic growth debate, cities can become “ideas centres” and be the catalyst needed for design and innovation in the property sector, driving an even greater demand in the sector despite tough economic conditions.
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